MSIM’s Global Sustain strategy hits $1b

LONDON, May 20: Marking the second anniversary of its launch, Morgan Stanley Investment Management (MSIM)’s Global Sustain strategy has attracted investor assets of USD $1 billion. Launched on 30 April 2018, the rapid growth of the strategy demonstrates strong investor demand for high quality ESG-integrated investment strategies managed by proven active managers. Since inception, the strategy has delivered an annualised net return of 6.27% vs MSCI World Index -4.18% .

Managed by the highly experienced International Equity Team, Global Sustain aims to offer investors a high quality, carbon light portfolio. The portfolio also appeals to those seeking a tobacco-free, alcohol free, and fossil fuel free solution. The portfolio’s carbon footprint is 95% lighter than MSCI World, per $1mn invested. The team integrates material ESG factors – both threats and opportunities to longterm return on operating capital – in its investment process.

William Lock, Head of MSIM’s International Equity team commented: “As bottom-up investors, we offer our clients a genuinely long-term perspective, a commitment to analyse material ESG issues by our Portfolio Managers within the team, deep sector and company expertise to isolate and analyse the key issues and a history of direct engagement with the companies we own”.

The International Equity team manages AUM of $39.1 billion across its strategies as of 31 March 2020. This includes $25.7 billion in the well-known Global Franchise/Brands strategy.

Richard Lockwood, MSIM’s Head of Distribution for Northern Europe, commented: “With decarbonisation a pressing concern, we continue to see increasing investor interest across markets in ESG-integrated strategies that also demonstrate a low-carbon track record. The market reception to the strategy in just two years demonstrates our clients’ appetite for a high quality ESG-integrated global equity strategy from a proven team. We are delighted that so many investors have chosen to partner with us.”